Home Renting vs Home Ownership

Here are some of the advantages of renting:

1. You are free to move if you get a chance to improve your position. This should be kept in mind particularly by those who have jobs with large organizations which shift personnel from one office to another. If you get a chance at a better job in a different location, home ownership might make you reluctant to accept it. Some renters, however, must sign leases guaranteeing to continue renting for a specific period – usually a year. Such leases also guarantee the renter that their rent will not be raised nor can be asked to move during his lease term. If you think you may need to move before the end of your lease term be sure the contract allows you permission to sub-lease to another tenant.

2. Your housing expenses can change as your income changes. If your income declines, you are not stuck with heavy mortgage payments.

3. If you decide you do not like the neighborhood or the people in it, you can easily move.

4. When you rent, the expenses of major repairs and replacements are paid by the landlord.

5. There is less responsibility in living in a rented place than in a place you own; this is particularly an advantage if you like to travel, take long vacations, or for any other reason like to have a great deal of freedom of movement.

6. Renting frees you of many expenses related to a home, such as taxes, property assessments, insurance, decorating expenses, maintenance and lawn services, etc. It is true that the rent you are charged is based on all these expenses, so in a sense you pay them. But if unforseen expenses of this type come up, they are assumed by your landlord.

7. Some families prefer to rent economical quarters in the early years of marriage so they can save money and later have enough down payment accumulated to buy the house of their choice. Houses purchased under such circumstances often are of better quality and location than those purchased in the early years of marriage when income is low and down payments are a real problem.

Owning your own home, on the other hand, presents a number of equally appealing advantages. Here are some of them:

1. Owning your own home has a great emotional advantage for a family. It binds all members of the family together, gives them a common interest, something they all take pride in.

2. Home ownership is a good financial investment, particularly during a period of inflation.

3. Home ownership is an effective method of enforced savings. Families who cannot master the habit of saving in any other way usually manage to set aside the amount of money needed to make payments on their home.

4. Home ownership stabilizes your annual cost of housing. The landlord cannot suddenly raise the rent. Once you have made the down payment, you can estimate quite accurately what your monthly costs will be – with adequate allowances for unexpected repair bills – and adjust the rest of your budget accordingly.

5. Home ownership offers income tax advantages. What you pay for property taxes and for interest on your home loan can be deducted.

6. Home ownership strengthens your credit standing.

7. A home owner can improve their home to suit them self and can accommodate to changes in the family and standard of living.

8. Home ownership gives the family a sense of belonging to a community. Friendships formed tend to be enduring, and the entire family takes an increased interest in community activities.

It is clear that a sound case can be made for either method of housing your family. Which best fits your values in marriage?